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Enterprise Zones: Lessons From the Maryland Experience

PEMD-89-2 Published: Dec 15, 1988. Publicly Released: Dec 15, 1988.
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Highlights

Pursuant to a congressional request, GAO studied the enterprise zone program in Maryland to identify issues for the possible development of a federal program, focusing on: (1) program cost offsets; (2) employment growth; (3) program effects on workers; (4) reductions in welfare dependence; and (5) the effectiveness of tax incentives and other local development strategies.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
The GAO assessment of the Maryland experience does not show that enterprise zones are effective. If Congress decides to introduce a federal program along those lines, the program should be a modest demonstration rather than the large effort proposed in several bills.
Closed – Not Implemented
The new administration is proposing enterprise zone legislation with major differences from the bill GAO examined.

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Topics

Business assistanceCost analysisFederal aid to citiesLabor surplus areasPrivate sectorProposed legislationState programsTax creditUrban economic developmentUrban development